In each case, she shows how well-intentioned rules make life harder for low-and-moderate income households and, in several cases, increase financial-stability risk in ways sure to prove even more costly for those least able to afford it.

Solutions include legislation to add a federal guarantee or other incentives to realign business incentives with sound equality-enhancing financial products. Karen also reiterates her call for new “Equality Banks,” building onprior workto outline several chartering options with a lot of power to offer innovative products such as start-up small business financing.